Huawei received a painful blow from ARM to design the processors by suspending the work with the Chinese company, making it unable even to manufacture its own processors because of intellectual property rights. In contrast, China - via its president's visit to a rare earth plant - that it can use this important element to produce treatments as a pressure card in its war with the United States.

Arm, based in the United Kingdom, suspended its work with Huawei, according to internal documents obtained by the BBC.

Aram issued instructions to employees to suspend all active contracts, support benefits and any outstanding commitments with Huawei and its subsidiaries in compliance with the latest US business campaign.

Although Aram was the largest British-based technology company based in Cambridge before being acquired by Japan's Softbank Group, it is concerned that it is affected by the US embargo.

Arm's designs are the foundation for most mobile processors worldwide, and because their designs contain Native American technology, they believe they are affected by Trump's prohibition.

"This is a blow to Huawei's unbeatable work," he said. "Arm's designs are the basis of the Huawei smart phone chips, so they are an insurmountable obstacle for the Chinese company and greatly affect their ability to develop their chips.

Huawei relies on the designs of its famous processor, Kirin, to design and drive the company to use these designs, so Huawei and its HiSilicon semiconductor company will not be able to continue manufacturing Kern processors using ARM designs.

"Armem complies with the latest regulations set by the US government," a spokesman for Arme said in a statement to Virgin magazine.

"We appreciate our close relations with our partners, but we are aware of the pressures that some of them are being subjected to as a result of politically motivated decisions."

Huawei adopts designs of its famous processor Kern on Aram designs and pays the company for the use of these designs (Reuters)

China's last weapon
"We are confident that this unfortunate situation can be resolved, and our priority remains to continue to deliver technology and world-class products to our customers around the world," Huawei's spokesman told Virgin magazine.

Analysts believe Huawei's response and the president's comments that China so far quietly seeks to end the crisis and not to show violent reactions, but send messages lined up, including the visit of Chinese President Xi Jinping to a Chinese company produces rare earth elements this week, widely read on It is a clear threat that Beijing is ready to act.

China has a leading position in the production of rare earth elements, producing more than 95% of the world's production of this substance, and the United States relies on China in more than 80% of its imports.

Rare earth materials are made up of 17 important components for everything from smart phones to televisions to cameras and lamps.

This gives Beijing enormous leverage in its war with the United States over who will own the future of high-tech.

The Chinese president's visit has raised speculation that something could be imposed as retaliatory measures, referring to the importance of the rare earth elements of the United States, where Washington excluded it from raising tariffs on Chinese goods this month.

"China can close almost all assembly lines of cars, computers, smartphones and aircraft outside China if they choose to ban these materials," wrote James Kennedy, president of Three Consulting on Tuesday in National Devins, an American industrial magazine.

China has been accused of using its control of rare earth elements for political reasons before, Japanese industry sources said it had temporarily halted exports in 2010 with a regional dispute between the two Asian rivals, which Beijing denies.

The World Trade Organization ruled in 2014 that the country had violated world trade rules by restricting mineral exports; are these rare elements the last weapon China retains in its response to the trade war with the United States?